IBM Software Group ® Reseller of Transaction Changes to Reseller of Record May 2006 Release

IBM Software Group Page 2  Concept originated in Lotus Passport (prior to IBM’s acquisition of Lotus)  Reseller of Record concept never modified to support the SWG software channel strategy or change in business environment  Prior to acquisition Lotus had less then 50 products today the program has expanded to products and is still growing  Does not complement Value Added Partner (VAP) or SMB strategy.  Resellers concerns:  Perception that IBM is giving away their leads/renewal business  Loss of opportunity because the renewal quote is not received or not received in a timely manner prior to auto renewal invoice being sent to customer.  Lost opportunity to up sell from the renewals  Access to renewals by resellers who did not sell the license encouraged renewal price undercutting  Customers concerns:  Quote does not go to their partner of choice  Forced to engage with a partner that they may not wish to continue doing business with.  Needs to manually segment their quote between their preferred Value Added Partners.  IBM Concerns:  Customer Data Privacy  Inhibiting Business Partners ability to grow their customer relationships due to obsolete business process Need for Change Current Reseller of Record Process

IBM Software Group Page 3 Objectives of the Reseller of Transaction Enhancement Develop a replacement for Reseller of Record concept which:  Complements the current business environment and IBM channel strategy  Meets the business requirements of both business partners and our customers  Provides the Reseller of a transaction the opportunity to: −renew Software Maintenance on licenses they have sold −grow the relationship with their customers  Provides customers the ability to easily maintain an ongoing relationships the Reseller(s) of choice for both license acquisitions and renewals.

IBM Software Group Page 4 Overview of the Reseller of Transaction Enhancement  Requirement from WW Channel and WW Passport Advantage Program Team  base on ongoing input that today's process concept no longer meets business environment needs.  New business rules for allowing access to renewal quote line item information on the Passport Advantage Online for Resellers site:  Reseller(s) and Distributor(s) of the prior transaction(s) have visibility to the items they sold −Note: prior transaction is equal to which ever occurred last: 1) the initial license and SW Maintenance acquisition or 2) SW Maintenance Renewal  If requested by customer: SW Maintenance Renewal Rep assigned to a quote can grant visibility to the whole quote to the customer authorized Reseller −Note: If a Reseller is given full view of a quote only the Reseller will be able to see all line items. A VAD will still only be able to view only their prior transactions.  Passport Advantage Online for Resellers Site will be the sole source for tier 1 and tier 2 partners to access the renewal quote information.  Resellers and VADs will have to proactively pull their customer renewal data via Passport Advantage Online for Resellers  WW consistent process and methodology for our Business Partners  Customer will continue to have the ability via their Passport Advantage Online site to forward a copy of the full quote to a single or multiple Business Partners

IBM Software Group Page 5 Who Can View What  Reseller of Transaction  View their prior year transaction renewal line items  Can see full view if granted by Customer (SW Maintenance Rep enables) −Flag on both Summary and Detail Report when Full View is granted to them −Can only see their name. Can not see fulfillment resellers name.  VAD of Transaction  View their prior year transaction renewal line items  Can never see full view unless they fulfilled all prior transactions  Flag on Detailed Report when full view is granted to Transaction Reseller −Flag will never display on VAD Summary Report  Reseller of Record and VAD in Master Record will become obsolete

IBM Software Group Page 6 Report Information  Both Resellers and VAD will be able to view their customer Renewal line item on Passport Advantage Online for Resellers  Will be able to view both summary and detail line item information  Report data will be able to be downloaded and utilized for creating customer quotes  Duplicate line items seen on web report view are eliminate when reports are downloaded.  Resellers and VADs will have to proactively pull their customer renewal data  Resellers contacting Renewal Team for quote information will directed to their VAD  VAD Report view  VADs will not see Reseller Name on their Summary Report  Reseller Name will only be seen on the VAD’s Detail Report  Detailed report information contains: −Customer Information (i.e. Name, Address. Passport Advantage Agreement-Site number) −Customer set designation ( i.e. SMB, etc) −Renewal Due Date −Quote Number −Line Item Details (Quantity, Part Number and description, Price level, Price)

IBM Software Group Page 7 Passport Advantage Online for Resellers (modified screens) External Business Partner View

IBM Software Group Page 8 Passport Advantage Online for Resellers (External Reseller view) Selection criteria

IBM Software Group Page 9 Passport Advantage Online for Resellers (External Reseller view) Summary report

IBM Software Group Page 10 Passport Advantage Online for Resellers (External Reseller view) Detail report

IBM Software Group Page 11 Passport Advantage Online for Resellers (External Value Added Distributor view) Selection criteria

IBM Software Group Page 12 Passport Advantage Online for Resellers (External Value Added Distributor view) Summary report Full view indicator will not display in VAD Summary Report

IBM Software Group Page 13 Passport Advantage Online for Resellers (External Value Added Distributor view) Detail report

IBM Software Group Page 14 Passport Advantage Online for Resellers (External Business Partner view) Downloaded report

IBM Software Group Page 15 Questions?